Credit Scores and Mortgage Rates
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| Your credit score is typically one of the primary factors in
determining what interest rate you are offered. When a lender sees that a
customer has a prompt payment history, they are more likely to offer a superior
rate because they know that they will not have to endure extra costs trying to
service their loan. Investors do not want to have to spend time and resources
trying to collect payments and certainly do not want to have to deal with the
hassles of foreclosing on a property if necessary. That is why people who have
less than perfect credit often receive higher rates than people who have paid
their bills on time. Lenders are often willing to take on customers with
damaged credit however they increase the rate to off-set the associated risk.
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Mortgages - Getting Credit Scores
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You may want to check your credit scores prior to shopping for
a mortgage. You can obtain a free copy of your credit report from the three
largest credit reporting agencies by visiting AnnualCreditReport.com.
Unfortunately, you will need to pay in order to receive your actual scores.
There is no clear-cut line that determines where good credit ends and poor
credit begins. Some lenders may say 620 is a good score and other may draw the
line at 660. No matter what your scores are, it is important to keep in mind
that this is only one variable in the decision making process. If you have good
ratios and solid assets, a lender may be inclined to place less emphasis on
your credit history.
Your AAXA Loan Advisor can help you navigate your credit report and let you
know exactly what you are qualified to borrow. Give us a call today at
877-RATE-LOW (877-728-3569) for more information. |
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| First
time buyer mortgage |
| Determining
what you are qualified to borrow and getting pre-qualified |
| Rent
Versus Buy |
| Beginner
Mortgage Checklist |
| Choosing
a mortgage company |
| Finding
the right real estate agent |
| Should
I consider 100% financing? |
| Pro
& Cons of adjustable rate mortgages |
| What
types of loans are available for the self-employed? |
| Why
do mortgage rates change? |
| What
is a mortgage broker? |